Children's Campus Inc

CHILDREN'S CAMPUS, INC. IS A NONPROFIT CORPORATION WHICH OPERATES TO SUPPORT AND PROMOTE THE HEALTH AND WELL-BEING OF CHILDREN ZERO TO FIVE YEARS OF AGE AND THEIR FAMILIES, LIVING PRIMARILY IN THE KANSAS CITY METROPOLITAN AREA. CCI AND THE CHILDREN'S CAMPUS OF KANSAS CITY (CCKC) ACCOMPLISH THIS MISSION BY CO-LOCATING MULTIPLE NON-PROFITS UNDER ONE ROOF TO MEET THE NEEDS OF CHILDREN AND THEIR FAMILIES. CCKC IS ALSO THE SOLE MEMBER OF CCI, AND THE BOARD OF DIRECTORS FOR BOTH ORGANIZATIONS IS ONE AND THE SAME.

OPERATION OF THE CCKC/CCI BUILDING:UNDER THE SUPERVISION OF THE CCKC/CCI BOARD OF DIRECTORS, CCI MANAGES BUILDING OPERATIONS FOR THE CAMPUS. THE CAMPUS HOUSES THREE NOT-FOR-PROFIT TENANTS. RENT FROM EACH TENANT IS USED TO COVER BUILDING OPERATING COSTS AND DEBT SERVICE COSTS. CCI UNDERTOOK BUILDING OPERATIONS TO SATISFY ARTICLE IV, SECTION (C) OF CCI'S ARTICLES OF INCORPORATION - "TO SUPPORT ITS EDUCATIONAL INSTITUTION MEMBERS BY PROVIDING SHARED SPACE AND CREATING ADJACENCIES WHICH ADVANCE, FURTHER AND FOSTER FINANCIAL, HUMAN AND RESEARCH EFFICIENCIES."

OPERATION OF THE CCKC/CCI BUILDING:UNDER THE SUPERVISION OF THE CCKC/CCI BOARD OF DIRECTORS, CCI MANAGES BUILDING OPERATIONS FOR THE CAMPUS. THE CAMPUS HOUSES THREE NOT-FOR-PROFIT TENANTS. RENT FROM EACH TENANT IS USED TO COVER BUILDING OPERATING COSTS AND DEBT SERVICE COSTS. CCI UNDERTOOK BUILDING OPERATIONS TO SATISFY ARTICLE IV, SECTION (C) OF CCI'S ARTICLES OF INCORPORATION - "TO SUPPORT ITS EDUCATIONAL INSTITUTION MEMBERS BY PROVIDING SHARED SPACE AND CREATING ADJACENCIES WHICH ADVANCE, FURTHER AND FOSTER FINANCIAL, HUMAN AND RESEARCH EFFICIENCIES."

ACQUISITION OF FEDERAL NEW MARKETS TAX CREDITS AND FINANCING FOR THE CCKC BUILDING: DURING FY 2010, THE CHILDREN'S CAMPUS OF KANSAS CITY, INC. (CCKC) AND CHILDREN'S CAMPUS, INC. (CCI) CLOSED ON A NEW MARKETS TAX CREDITS TRANSACTION. CCKC SERVED AS THE LEVERAGE LENDER IN A $10,112,951 LOAN AGREEMENT WITH NMI 47 INVESTMENT FUND, LLC (NMI). CCI SERVED AS THE QALICB AND ENTERED INTO A LOAN PAYABLE AGREEMENT WITH NMI FOR $13,279,916. AS STATED IN THE QALICB LOAN AGREEMENT, CCI PAID QUARTERLY INTEREST AND MANAGEMENT FEES ON THE QALICB LOAN. THE FEDERAL NEW MARKETS TAX CREDITS PLAYED A KEY ROLE IN FINANCING THE COMPLETION OF THE CCKC BUILDING. ON DECEMBER 8, 2016, U.S. BANCORP COMMUNITY DEVELOPMENT CORPORATION (USB), THE TAX CREDIT INVESTOR, EXERCISED ITS PUT OPTION ALLOWING USB TO SELL ITS OWNERSHIP INTEREST IN NMI, RESULTING IN THE TRANSFER OF THE $13,279,916 LOAN PAYABLE TO NMI TO CCKC. CCKC SUBSEQUENTLY FORGAVE THE CCI LOAN PAYABLE, AND THE TRANSACTION ALSO RESULTED IN THE FORGIVENESS OF THE CCKC LEVERAGE LOAN. THE DIFFERENCE BETWEEN THE THE FORGIVENESS OF THE $13,279,916 LOAN PAYABLE AND $10,112,951 NOTE RECEIVABLE WAS RECOGNIZED AS CONTRIBUTION REVENUE BY CCKC IN THE AMOUNT OF $3,166,965. CCI ALSO TOOK OUT A CONSTRUCTION LOAN TO FINANCE THE REMAINING BUILDING COSTS. MONTHLY PRINCIPAL AND INTEREST PAYMENTS ARE BEING MADE ON THE CONSTRUCTION MORTGAGE.

ACQUISITION OF FEDERAL NEW MARKETS TAX CREDITS AND FINANCING FOR THE CCKC BUILDING: DURING FY 2010, THE CHILDREN'S CAMPUS OF KANSAS CITY, INC. (CCKC) AND CHILDREN'S CAMPUS, INC. (CCI) CLOSED ON A NEW MARKETS TAX CREDITS TRANSACTION. CCKC SERVED AS THE LEVERAGE LENDER IN A $10,112,951 LOAN AGREEMENT WITH NMI 47 INVESTMENT FUND, LLC (NMI). CCI SERVED AS THE QALICB AND ENTERED INTO A LOAN PAYABLE AGREEMENT WITH NMI FOR $13,279,916. AS STATED IN THE QALICB LOAN AGREEMENT, CCI PAID QUARTERLY INTEREST AND MANAGEMENT FEES ON THE QALICB LOAN. THE FEDERAL NEW MARKETS TAX CREDITS PLAYED A KEY ROLE IN FINANCING THE COMPLETION OF THE CCKC BUILDING. ON DECEMBER 8, 2016, U.S. BANCORP COMMUNITY DEVELOPMENT CORPORATION (USB), THE TAX CREDIT INVESTOR, EXERCISED ITS PUT OPTION ALLOWING USB TO SELL ITS OWNERSHIP INTEREST IN NMI, RESULTING IN THE TRANSFER OF THE $13,279,916 LOAN PAYABLE TO NMI TO CCKC. CCKC SUBSEQUENTLY FORGAVE THE CCI LOAN PAYABLE, AND THE TRANSACTION ALSO RESULTED IN THE FORGIVENESS OF THE CCKC LEVERAGE LOAN. THE DIFFERENCE BETWEEN THE THE FORGIVENESS OF THE $13,279,916 LOAN PAYABLE AND $10,112,951 NOTE RECEIVABLE WAS RECOGNIZED AS CONTRIBUTION REVENUE BY CCKC IN THE AMOUNT OF $3,166,965. CCI ALSO TOOK OUT A CONSTRUCTION LOAN TO FINANCE THE REMAINING BUILDING COSTS. MONTHLY PRINCIPAL AND INTEREST PAYMENTS ARE BEING MADE ON THE CONSTRUCTION MORTGAGE.

CCKC GROUND LEASE:CCI LEASES THE LAND AT 444 MINNESOTA AVENUE,ON WHICH THE CCKC BUILDING WAS CONSTRUCTED, FROM CCKC UNDER A 99-YEAR GROUND LEASE AGREEMENT. THE LEASE WAS UNDERTAKEN TO SATISFY ARTICLE IV, SECTION (C) OF CCI'S ARTICLES OF INCORPORATION.

CCKC GROUND LEASE:CCI LEASES THE LAND AT 444 MINNESOTA AVENUE,ON WHICH THE CCKC BUILDING WAS CONSTRUCTED, FROM CCKC UNDER A 99-YEAR GROUND LEASE AGREEMENT. THE LEASE WAS UNDERTAKEN TO SATISFY ARTICLE IV, SECTION (C) OF CCI'S ARTICLES OF INCORPORATION.